Jump on This Cloud Stock Once it Comes a Little Closer to Earth

by Sam Collins | January 15, 2013 1:31 am

SAP AG (NYSE:SAP[1]) — This Germany-based provider of application software specializes in enterprise resource planning (ERP) software used for back office accounting and budgeting. Much of its product is geared to database and storage-related cloud technology.

Earnings are expected to grow to $4.41 in 2013, up from an estimated $3.55 in 2012.

The stock broke from a nine-month cup-and-handle base in November, followed by a breakaway gap. It is currently consolidating with support at its 50-day moving average at $78.

Buy SAP under $80 with a trading target of $92. Investors may want to hold SAP as a cornerstone investment cloud computing technology.